A partner that receives cash in an operating distribution recognizes loss if the cash distributed is less than the partner's outside basis in the partnership immediately before the distribution.
Answer the following statement true (T) or false (F)
False
Partners may only recognize losses for liquidating distributions.
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In a typical, efficient AP/CD process, you would expect that "validating" a vendor invoice might include all of the following steps except:
a. having a copy of the invoice approved by the purchasing manager b. comparing the invoice with a copy of the purchase order c. comparing the invoice with a copy of the receiving report d. checking the invoice for mathematical accuracy
Explain how employee stock ownership plans (ESOPs) differ from stock options.
What will be an ideal response?
The last resort of managing sideways should be ______.
a. getting all of the other team members to gang up on the one who is not contributing b. yelling at one’s peers c. getting one’s formal leader involved d. giving up
Match the following definitions with terms 1 through 8. Place the letter that identifies the best definition in the blank space next to the term.____ 1. Generally accepted accounting principles____ 2. Time period assumption____ 3. Statement of retained earnings____ 4. Balance sheet____ 5. Income statement____ 6. Measurement (Cost) principle____ 7. Securities and Exchange Commission____ 8. IASB____ 9. Full disclosure principle____ 10. Statement of cash flowsa. Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis.b. Describes a company's revenues and expenses and computes net income or loss over a period of time.c. An independent group consisting of individuals from many countries that identify preferred accounting practices.d. Presumes that the life
of a company can be divided into periods for reporting purposes.e. The concepts and rules that govern financial accounting.f. A financial statement that reports the changes in equity over the reporting period, excluding stockholder investments.g. A report that identifies cash receipts and cash payments over a period of time.h. Prescribes that a company report the details behind financial statements that would impact user decisions.i. The governmental agency that has the legal authority to establish accounting rules.j. A report that describes a company's financial position at a point in time. What will be an ideal response?